LAW 603 Chapter Notes - Chapter 20: Implied Powers, Breach (Security Exploit), Fiduciary
8 Apr 2014
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Chapter 20 agency & other method of carrying on business. Agent person who acts on behalf of someone else for some specific purpose. Principal person whom an agent represents for some specific purpose. Agency the legal relationship between a principle and an agent. Agents must act within their authority to contract; binding principal to contract with a third party. Ex: can negotiate a 10% decrease in price; their authority for price decrease cannot exceed a discount greater than 10% Basic rules of agency creation of an agency relationship. Express agreement: one of most common ways to create agency relationship; express agreement principal and agent enter contract; setting out terms on which agent is appointed, including scope of agent"s authority and agent"s remuneration. Agency agreement must be in writing if agent is to have authority to sign cheques on behalf of principal.
